Australian dollar (AUD) wavers amid mixed market mood
The Australian dollar (AUD) had an uncertain start to the week amid a lack of Australian data and a mixed market mood.
Although there is some optimism that Donald Trump may soften his stance on tariffs, fears of a global economic slowdown initially kept risk sentiment in check.
Australian economic data remains absent from the calendar today, which could leave the ‘Aussie’ to trade on market risk dynamics.
New Zealand dollar (NZD) wobbles amid uncertain risk appetite
The New Zealand dollar (NZD) also had an unsure start to the session, with the lukewarm market mood keeping NZD confined to a narrow range.
Economic data from New Zealand remains hard to come by today, potentially leaving the ‘kiwi’ at the mercy of the market mood.
Pound (GBP) rises amid UK hopes
The pound (GBP) enjoyed strong support at the start of this week’s session, with GBP seemingly supported by the UK’s possible resilience to growing trade tensions.
The Confederation of British Industry’s (CBI) latest distributive trades survey provided the pound with additional support, as it beat forecasts to print at a six-month high in April – although it still pointed to a decline in sales volumes.
Later this evening, Bank of England (BoE) Deputy Governor Dave Ramsden is due to speak. If he says that global trade tensions could be disinflationary for the UK and therefore lead to more interest rate cuts, Sterling could stumble.
Euro (EUR) muted as markets await data
The euro (EUR) was mixed yesterday, wavering slightly lower against its stronger rivals, as EUR investors braced for high-impact data later in the week.
Eurozone GDP and inflation later in the session could significantly impact European Central Bank (ECB) rate cut bets, so some traders opted to hold off placing aggressive bets on the euro on Monday.
Looking ahead, the Eurozone’s economic sentiment index for April is out on Tuesday. Could a decline in morale see EUR slip?
US dollar (USD) slumps amid tariff fears
The US dollar (USD) initially wavered yesterday as an uncertain mood and hesitancy among USD investors muted the currency.
However, USD then plunged in the evening. An improvement in risk appetite weighed on the safe-haven ‘greenback’, along with a shockingly large slump in manufacturing activity in Texas, with firms blaming tariffs and policy uncertainty.
Today brings the latest JOLTs job openings figure and US consumer confidence report. Could declining job openings and household morale see USD face further losses?
Canadian dollar (CAD) quiet as election gets underway
The Canadian dollar (CAD) fluctuated in a narrow range yesterday as the polls opened for Canada’s federal election.
Today, CAD could be influenced by the results of the election. As investors favour stability, a win for the Liberals could potentially support the ‘loonie’.
Data releases
16:00 GfK Consumer Confidence (May)
19:00 EUR Economic Sentiment (Apr)
19:40 GBP BoE Ramsden Speech
00:00 USD JOLTs Job Openings (Mar)
00:00 USD CB Consumer Confidence (Apr)